Dell Technologies is selling its cybersecurity arm RSA Security LLC to a consortium of private equity firms in a deal worth upwards of $2 billion.
The syndicate is led by Palo Alto-based private equity firm Symphony Technology Group, and includes Ontario Teachers’ Pension Plan Board and AlpInvest Partners.
RSA provides a selection of security services, including fraud protection, access and risk management, and threat detection. It was acquired by Dell in 2015 as part of the purchase of EMC Corp.
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As part of the deal, the group of private equity firms will acquire RSA Archer, RSA NetWitness Platform, RSA SecurID, RSA Fraud and Risk Intelligence and RSA Conference.
According to Dell Technologies, the sale of RSA is in the interest of all stakeholders.
“This is the right long-term strategy for Dell, RSA and our collection customers and partners,” said Jeff Clarke, COO and Vice Chairman at Dell Technologies.
“The transaction will further simplify our business and product portfolio. It also allows Dell Technologies to focus on our strategy to build automated and intelligent security infrastructure, platforms and devices to keep data safe, protected and resilient.”
Symphony Technology Group, equally buoyed by the transaction, sees it as “a great opportunity for solving some of the rapidly developing customer challenges that go along with digital transformation.”
The announcement of the sale - expected to close within the next six to nine months - comes in the immediate lead up to RSA’s annual event in San Francisco, set to take place in the first week of March.
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